chapter  Case 7
3 Pages

SteelCom

WithLincoln C. Wood

SteelCom creates Mesh products from iron wire that is supplied in spools, straightened, cut into the same length, collected in bundles, transferred to a separate machine that creates a grid pattern and automatically welded together into the sheets of mesh. Structural steel products provide additional strength and structural support for the concrete used in buildings and other structures in the construction industry. SteelCom’s supply chain manager focuses on four main types of inventories: work in process, finished goods, consignment stocks, and raw materials. Management of work in process and finished goods stock is relatively simple; much of SteelCom’s business is make to order rather than make to stock. The management of raw materials and the procurement/sourcing process remains challenging. An added challenge is that SteelCom manages the inventory from the local port, transports it to their facility, and stores it as raw materials.